NRM 1 - Order of Cost Estimating and Cost Planning for Capital Building Works: NRM 1 (New Rules of Measurement)

Product Information

Established and effective cost control systems and procedures, understood and adopted by all members of the project team, entail less effort than ‘crisis management’ and will release management effort to other areas of the building project. Through William, he is an ancestor of the present-day British royal family, as well as an ancestor of all current European monarchs and a great many pretenders to abolished European thrones.

With robust allowances being made for abnormals, design development and issues such as unavoidable delays, the developer will be able to enter into the project with the full backing of well-informed lenders and/or investors. Management means control, so cost management means all those actions necessary to understand why costs occur and the necessary responses so that decisions controlling costs are taken promptly – in light of all relevant information.To illustrate the point, look at the NEC3 Schedule of Cost Components, which breaks down the cost of a project into its constituent parts (labour, materials, plant, design and so on). The aforementioned limitations made it very difficult to comply with the rules, which would be misleading for clients if drafted in the manner required by NRM. The primary development in recent years has been the publication of the International Cost Management Standard (ICMS) (formerly known as International Construction Measurement Standards). NRM 1 is the cornerstone of good cost management for construction projects, enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control.

The new NRM volumes were published alongside guidance on conflict avoidance and dispute resolution and retention. Together with the Cost prediction professional standard, there now exists a hierarchy of cost management standards and tools from the high-level and global ICMS, through the more detailed principles of all aspects of cost prediction in the professional standard, to the detailed rules and guidance in the NRM suite. However, it at least introduces a degree of discipline and should over time allow a database of historic cost information to be collected, which will then inform future cost plans. In the context of building projects, cost management involves the overall planning, co-ordination, control and reporting of all cost-related aspects from initiation to operation and maintenance. As such we’re aware of organizations elsewhere having prepared their own translations of classification headings, though of course the codes themselves remain consistent wherever you are.

NRM 1 aims to be the foundation of good cost management of construction projects – enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control.